Sun Resources (ASX: SUR) has executed an agreement with Peak Oil & Gas to farm‐out a capped 7.5% interest in the L20/50 exploration permit onshore Thailand.
The farm‐out agreement replaces the previously announced term sheet, in which Peak had the ability to earn an interest of up to 20% in the permit.
Peak will free carry Sun through the first well which will test a gross speculative resource of 21 million barrels of oil at the Tapao Kaew Prospect.
The drilling program of up to 3 wells will commence in January 2011.
Sun remains well funded with over A$8 million in the bank, after a $7 million capital raising was completed last month.
The L20/50 permit lies on the onshore Phitsanulok Basin, located between Thailand’s two largest producing onshore field complexes.
The permit is the next basin along from the Carnarvon Petroleum (ASX: CVN) Phetchabun Basin Oil Fields, producing up to 15,000 bopd with >60 mmboe estimated ultimate recovery, and 20 kilometres south, in the same basin as the prolific Sirikit Oil Field, producing ~20,000 bopd with >200 mmboe estimated ultimate recovery.